Depreciation Entry

Question: A Fixed Asset Item has been purchased and stored in a warehouse. How to create a depreciation for a Fixed Asset Item?

Answer: You can post asset depreciation entry for the fixed asset item via Stock Reconciliation Entry.

Step 1:

In the Attachment file, fill in the appropriate columns;

• Item Code whose value is to be depreciated.
• Warehouse in which item is stored.
• Qty (Quantity) Leave this column blank.
• Valuation Rate will be item's value after depreciation.

After updating Valuation Rate for an item, come back to Stock Reconciliation and upload save .csv file.

Step 2:

Select Expense account for depreciation in Difference Account . Value booked in the depreciation account will be the difference of old and next valuation rate of the fixed asset item, which will be actually the depreciation amount.